Accounts

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Title: Accounts

Essay Details:

Subject: Business

Author: Edward C

Date: July 1, 2011

Level: University

Grade: B

Length: 5 / 1202

Essay text:

The selling price of its product is Rs.80 per unit and the variable cost (including that of the raw material) is Rs.55 per unit. In addition the company in normal circumstances incurs a fixed overhead of Rs.1,24,000 per month out of which around 40% would be saved if the factory is closed down. The annual sale of the product is 1,20,000 units and the same is spread evenly throughout the year. Arrive at the profit/loss of the unit based on the above data for this period of six months till the material arrives in the factory. Assume that the material is consumed in the first month and the finished product sold...

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